China’s top internet regulator has told leading tech companies to immediately cease purchasing Nvidia’s specialized AI chips, intensifying the country’s push to cut dependence on American technology.
The order marks a pivotal escalation in Beijing’s regulatory efforts and has sent ripples through both domestic and global semiconductor industries.
The moves by China’s Cyberspace Administration impact flagship firms such as ByteDance and Alibaba, demanding they halt ongoing testing and cancel orders for Nvidia’s RTX Pro 6000D chips.
This action widens the scope from prior curbs on Nvidia’s H20 line, reflecting a firmer stance amid rising US-China tech rivalry.
What directive did China issue to tech giants?
This week, the Cyberspace Administration of China compelled major technology firms to abandon both ongoing and future orders for Nvidia’s China-specific RTX Pro 6000D AI chip.
Previously, regulatory attention focused on the H20 series, but the new mandate takes a comprehensive approach, impacting all key US AI chip supplies for now.
By instructing companies such as ByteDance, Alibaba, and Baidu to cancel these orders, authorities also emphasized the need to suspend ongoing chip testing with international vendors.
The policy aims not only to curb American technology imports but also to encourage a rapid pivot to Chinese-domiciled alternatives as part of the government’s broader tech independence campaign.
Did you know?
Cambricon Technologies reported a 44-fold jump in revenue in just one year, driven by increased adoption of its chips in China.
How does this ban affect Nvidia and global markets?
Nvidia’s shares dipped 1% in early market trading following news of the Chinese ban, reflecting investor concerns about expected sales drops. China accounted for roughly 13% of Nvidia’s global revenue in 2024, so its absence from this crucial market could reduce the company’s reach and scale in top-line growth.
Some Chinese tech enterprises had already flagged tepid interest in the RTX Pro 6000D, citing performance limitations and high cost relative to what gray market channels could deliver.
Still, the ban undermines a product lineup that was specifically tailored by Nvidia to comply with US export controls, and it signals to other global players that regulatory risk in the China market has intensified.
Are domestic chipmakers set to gain in China?
The crackdown reflects a corresponding surge in support for domestic semiconductor innovation. Regulators have requested major domestic chip designers such as Huawei and Cambricon, along with Big Tech champions, to formally evaluate homegrown AI chip offerings and benchmark them against Nvidia’s restricted products.
Cambricon, notably, posted a 1.03 billion yuan profit in the first half of 2025, swinging firmly into the black from a sizable loss last year.
This shift has also effectively crowded in demand for China-owned AI processors, with executives sharing that total orders and capacity plans for next year are projected to triple.
Strong adoption signals, paired with headline-grabbing financial results, suggest an inflection point for China’s independent chip sector just as reliance on US supplies is forced down.
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Why was the RTX Pro 6000D targeted?
Nvidia had positioned the RTX Pro 6000D as a legal alternative for Chinese customers under US trade rules. However, Chinese regulators argued that even these compliant chips reinforced dependency on American suppliers and prioritized access to advanced technical know-how, which was not easily replaced.
The 6000D's lackluster test performance, especially compared to some gray-market imports and new domestic rivals, also left it vulnerable to scrutiny.
Concerns mounted that the RTX Pro 6000D might yield only incremental gains for China’s AI ambitions, especially against the backdrop of rapidly maturing indigenous semiconductor platforms.
Industry insiders say several large tech purchasers had held back or only explored trials due to price-to-performance metrics and shifting regulatory signals.
What does this decision signal for AI competition ahead?
This escalation marks more than tactical enforcement, signaling Beijing’s intent to decouple strategically sensitive areas of its tech economy from foreign reliance.
The move is widely interpreted as a high-confidence assertion that China’s AI chip sector is now mature enough to shoulder critical domestic workloads, particularly as the US tightens its technology export regime.
Industry analysts expect China’s AI processor output to multiply next year, laying the groundwork for a parallel supply ecosystem.
While both markets remain deeply intertwined in component sourcing, the new ban crystallizes hopes and risks tied to government-backed technological sovereignty in one of the world’s most dynamic sectors.
China’s directive to halt Nvidia’s AI chip sales is likely to accelerate the scaling of indigenous offerings, with deeper implications for cross-border technology flows and global competition.
Companies and investors are absorbing the immediate impacts, but the race for leadership in AI hardware has entered a new and volatile stage.
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